An investor bought a 30-year coupon-paying bond on January 1st, 2017. The bond pays a coupon C at the end of each calendar year. By January 1st, 2018 interest rates have increased at all maturities. The Holding Period Return of this investment from 1/1/2017 to 1/1/2018 must have been negative. a) true
b) false

b) false

Explanation:

lets assume that the investor purchased a 30 year coupon at par ($1,000) on January 1, 2017. The bond pays a coupon of C, and the market rate = c (bond purchased at par).

BY January 1, 2018, market interest rate = C + X, that means that the bond's market value has decreased to $1,000 - Y.

holding period return = [coupon + (ending value - initial value)] / initial value

holding period return = [C + ($1,000 - Y - $1,000)] / $1,000 = (C - Y) / $1,000

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know